Boris Johnson and Michael Gove prepare 'dream team' Brexit government

Boris Johnson and Michael Gove are preparing a “dream team” bid to take control of the leadership of the Conservative Party in the wake of the most dramatic week in modern British political history.

David Cameron resigned as Prime Minister yesterday morning after Britain voted to leave the European Union sparking a major political, economic and constitutional crisis.

Within hours of the surprise vote, Mr Cameron had resigned, the Bank of England intervened in the financial markets to prevent a crash and the Scottish government threatened to hold another referendum on splitting from the rest of the United Kingdom.

In a statesmanlike address from the Vote Leave headquarters, Mr Johnson positioned himself as a Prime Minister in waiting by urging unity in the nation and speaking of the bright future that now awaits an outward-looking Britain.

“I want to speak to the millions of people who did not vote for this outcome especially young people who may feel that this decision in some way involves pulling up the drawbridge or any kind of isolationism. I think the very opposite is true.

“To those who may be anxious at home or abroad this does not mean that that he UK will be in anyway less united nor indeed does it mean that it will be any less European.”

He added: “We cannot turn our backs on Europe. We are part of Europe. Our children and grandchildren will continue to have a wonderful future as Europeans travelling to the continent, understanding the languages and cultures that make up of common European civilisation.”

It is now expected that Mr Johnson will stand as leader, with Mr Gove, the Justice Secretary, becoming the Chancellor in a “Brexit Government”, sources claimed.

George Osborne, the current Chancellor, could work alongside the pair after it emerged that he made overtures towards Mr Johnson, sending an olive branch text message in the early hours of Friday following the shock victory by the Leave campaign.

It came on a day described as the most dramatic in the modern history of British politics. In the space of just six hours the country voted to leave the European Union, Mr Cameron resigned and Jeremy Corbyn was left facing a leadership challenge.

After a night of tension which say the Brexit campaign score major victories across middle England and the north, it became clear shortly after dawn that Mr Cameron was going to resign.

At 8.15am he gave a speech in Downing Street flanked by his wife Samantha, who appeared tearful as her husband said it was “in the national interest to have a period of stability and then the new leadership required”.

Sources close to Mr Johnson say he was left “extremely upset” by Mr Cameron’s resignation and “felt personally responsible” as he watched an emotional Mr Cameron tell the nation that he is no longer the right person to be "the captain that steers our country to its next destination".

While Mr Cameron called Mr Gove before making his resignation speech outside Number 10, he pointedly declined to make contact with Mr Johnson, only replying to a text message sent later in the morning by the former London mayor.

Within minutes of Mr Cameron saying that he wanted a new Tory leader in place by the beginning of October, there was speculation about his potential successor.

Although Mr Johnson is the clear frontrunner, moderates were last night understood to be rallying around Theresa May, the Home Secretary, who backed Remain but was praised by Eurosceptics for keeping relatively silent during the campaign.

UK-US security ties 'will endure'

Michael Fallon, the Defence Secretary, has received reassurances from his US counterpart that security ties with Britain will "endure" in light of the vote to leave the European Union.

In return, Mr Fallon told Ash Carter that the UK would remain committed to tackling global security issues and continue in the fight against Islamic State of Iraq and the Levant (Isil) as a member of Nato.

After the pair spoke by phone on Friday, Pentagon spokesman Peter Cook said:

The secretary reaffirmed that those bonds endure after yesterday's vote by the United Kingdom to exit the European Union. The two leaders committed to work together to strengthen international partnerships that have helped ensure security for the United States, the United Kingdom, Europe and the world.

We will see that close work together continues in next month's Nato summit in Warsaw, and it's on display every day in the fight against Isil.

Signs of difficulties ahead

The German MEP Elmar Brok, who chairs the European parliament’s committee on foreign affairs, has told the Guardian the parliament would call on Juncker to strip the British commissioner, Jonathan Hill, of the financial services brief with immediate effect and turn him into a “commissioner without portfolio”. He said:

They will have to negotiate from the position of a third country, not as a member state. If Britain wants to have a similar status to Switzerland and Norway, then it will also have to pay into EU structural funds like those countries do. The British public will find out what that means.

Congratulations, smart Brits. Good on you for ignoring all the fear mongering from special interest globalists who tend to aim for that apocalyptic One World Government that dissolves a nation's self-determination and sovereignty... the EU being a One World Government mini-me.

America can learn an encouraging lesson from this. It is time to dissolve political bands that connect us to agendas not in our best interest. May UN shackles be next on the chopping block.

Pentagon: Brexit won't affect Nato

The Pentagon is confident that defense ties with Britain will continue and U.S. Secretary of Defense Ash Carter spoke with his counterpart by phone after Britain voted to leave the European Union, a Pentagon spokesman said on Friday.

Speaking with reporters, Peter Cook said the United States was confident that Britain would remain a strong ally in NATO, which "will continue to perform its very important function."

"They look forward to seeing each other..."

Barack Obama and David Cameron have overlapped as president and Prime Minister for six years. Just months remain of that partnership, with Mr Cameron succumbing to a defeat Mr Obama travelled to the UK to try and prevent.

One would think they would have plenty to say to each other today, though this readout from Downing Street gives the impression of a rather brief conversation.

He said: "Just a few hours ago I spoke with Prime Minister David Cameron. David has been an outstanding friend and partner on the global stage. "Based on our conversation I am confident the UK is committed to an orderly transition out of the EU.

"We agreed that out economic and financial teams will remain in close contact as we stay focused on ensuring economic growth and financial stability." Mr Obama said he then spoke to Angela Merkel.

He added: "I do thing the vote yesterday speaks to to the ongoing changes and challenges that are raised by globalisation. "While the UK's relations with the EU will change, one thing that will not change is the special relationship between our two nations. That will endure. "The EU will remain one of our indispensable security partners.Our Nato alliance will remain a cornerstone of global security."

What leaving the EU means for your personal finances

What leaving the EU means for your personal finances How exactly a Brexit will affect your personal finances is impossible to accurately predict just yet, but Consumer Affairs Editor Katie Morley provides a breakdown of the way things appear to be heading at this early stage.

What leaving the EU could cost travellers The Brexiteers have won. We are leaving the EU. Will those much derided warnings of so-called Project Fear prove justified, or will the arguments for Brexit be vindicated?

It’s a huge question; one which will affect us all - no more so than in the world of travel. So what impact can we expect on our holidays? The Telegraph's Head of Travel Charles Starmer-Smith is here to tell us.

IDS: 'We shouldn't waste time'

Britain is not running away from the EU after voters backed Brexit, Iain Duncan Smith has insisted, as he called for swift progress on a new agreement.

The former Conservative leader said the UK "shouldn't waste time" in sorting a deal with the other 27 EU member states, adding this work should begin before the Tory Party leadership contest.

Mr Duncan Smith also said he regretted David Cameron's decision to quit as Prime Minister, although he urged his party's MPs to focus on helping to stabilise the country.

Iain Duncan SmithCredit:
EPA/WILL OLIVER

The leading Vote Leave campaigner, who resigned as work and pensions secretary in a row over planned disability benefit cuts, said there was a "very different tone" among the EU countries following the Leave result.

The Tory MP told the Press Association: "They want to get sorted, they want to do a deal and I agree with them - that's why we shouldn't waste time.

"We should get on with it now and we can come up with a very good deal with them and it'll stabilise everything.

"We'll have a relationship with them - we're not running away - it will just be a better relationship."

Addressing Mr Cameron's future, Mr Duncan Smith said: "I'm sorry that he has stepped down. I think he's been a good Prime Minister and I regret his decision but I understand why he's done it.

"Our job now is to make sure that we get the process that the public voted for under way and settled.

"He's now said there will be a leadership election, but I'd like to get on with that even before the leadership election so we'll be discussing all of that over the next few days."

Mr Duncan Smith refused to be drawn on the leadership prospects of fellow Brexit supporters Michael Gove and Boris Johnson, with a decision expected by October.

David Cameron resigns

He said: "I'm not even focusing on the candidates. I've no idea who is going to stand or why they want to stand but I know I just want to get this process (with the EU member states) sorted and under way, which is the most important thing to me.

"The leadership stuff is secondary, frankly."

Asked about how he will celebrate the referendum result, Mr Duncan Smith said of his plans: "Not very much - I'd like to go and have a sleep actually to be quite frank with you.

Donald Trump praises 'beautiful' Brexit

Donald Trump has described the Brexit vote as a “beautiful, beautiful thing” as he praised Boris Johnson for reading the public mood better than David Cameron and promised there would be “zero” impact on the special relationship if he becomes US president.

Speaking on a visit to Scotland, the presumptive Republican candidate said the British people had “taken back their independence” and predicted the end of the EU could be “on its way” with other member states fed up with immigrants flowing across “Swiss cheese” borders.

He also said there was a “big parallel” with the political mood in the US and elsewhere in the world, including Germany, arguing that people want to “take their borders back” and “have their country again.”

Major: History will judge Cameron well

Former Tory prime minister Sir John Major has heaped praise on David Cameron for rescuing the economy and championing marriage equality.

Describing the Prime Minister's decision to stay in Downing Street for another three months as "statesmanlike", Sir John insisted history would judge him well.

"I think it's very sad that David has decided he has to go. I think he made the right decision. I think he had no choice," Sir John told the BBC.

Sir John Major and Tony Blair speak as they walk across the Peace BridgeCredit:
Jeff J Mitchell/Getty Images

"I think when people look back on his premiership they will see quite a few things.

"Upon the day he became Prime Minister our economy was on the precipice, our banks were very close to collapse, and the forecast was dire.

"We now have one of the strongest economies, our banks are much better prepared now than ever before to face any of the difficulties that will lie ahead, and I think that is very much to David Cameron's credit," the ex-PM said.

Nigel Farage, the leader of the United Kingdom Independence Party (UKIP), makes a statement after Britain voted to leave the European UnionCredit:
REUTERS/Toby Melville

Sir John singled out Mr Cameron's push to bring in marriage equality for gays and lesbians as a major change for the country.

He added: "And I think his social agenda too has been very progressive. Many people didn't like it, but there were many others who felt life was very harsh about their personal preferences, who will look back and say he brought a breath of fresh air and freedom to our lives that we hadn't had before.

"I think that is a very remarkable record, and I think he'll be remembered for it."

Unions move to snuff out Jeremy Corbyn leadership coup attempt

Union leaders have moved to snuff out the leadership coup against Labour leader Jeremy Corbyn.

A statement from 12 unions - including the party's biggest financial supporters Unite, Unison and GMB - said that "the last thing Labour needs is a manufactured leadership row of its own in the midst of this crisis".

Labour Leader Jeremy CorbynCredit:
Christopher Furlong/Getty Images

The full statement says:"The Prime Minister’s resignation has triggered a Tory leadership crisis. At the very time we need politicians to come together for the common good, the Tory party is plunging into a period of argument and infighting.

"In the absence of a government that puts the people first Labour must unite as a source of national stability and unity.

Jeremy Corbyn leaves his home on June 24Credit:
Rob Stothard/Getty Images

"It should focus on speaking up for jobs and workers’ rights under threat, and on challenging any attempt to use the referendum result to introduce a more right-wing Tory government by the backdoor.

"The last thing Labour needs is a manufactured leadership row of its own in the midst of this crisis and we call upon all Labour MPs not to engage in any such indulgence."

Calls for a 'new European treaty'

Nicolas Sarkozy, the former French president and leader of the opposition party, The Republicans, on Friday called for a "new European treaty" in the wake of Brexit.

"What the British have said could have been said by a other European populations. We cannot ignore it," said Mr Sarkozy, who it is widely thought hopes to run for re-election.

He added: "Europe can function without the British and we have time, by the way, to rethink our relationship with our neighbour".

Former French President Nicolas SarkozyCredit:
RAJAT GUPTA

However, he went on the remaining 27 EU states "can no longer function in this way".

"I call for a meeting of European heads of state and government to take the decision of drawing up a new Treaty. That will show the peoples of our continent that Europe has decided to take its destiny in hand," he said.

For Mr Sarkozy, this treaty should have "five pillars".

Sarkozy calls for a "new European treaty" in the wake of BrexitCredit:
REUTERS

The first should be the creation of a Schengen 2 agreement overseen by a European interior minister to ensure Europe's borders were "respected" and that non-Europeans could not enter and move around the continent as they please.

Second, he called for "an economic government of the eurozone with a stable president elected by his peers, a European monetary fund that will "ensure the independence of Europe".

Third, the principle of subsidiarity "must become a reality", bar around a dozen stategic priorities that can be handled at continental level, such as energy and agriculture.

European CommissionCredit:
AP

Fourth, the European Commission "can no longer cumulate executive, legislative and judicial competencies", he said. "It must enact the European Council's decisions" and not take any without the "explicit accord of the European parliament or national parliaments".

And finaly, "the process of European englargement must clearly be stopped until further notice". Turkey, he went on, "has no place in the EU".

Brexit voter changes her mind: I'm full of regret

Brexit voter changes her mind: I'm full of regret Mandy Suthi says that she her family voted for Brexit but they've changed their mind now that she's seen what's happening. She told ITV she is full of regret and along with her two sisters and her parents, would vote differently if given a second chance.

"The facts are coming in now and our eyes are actually open," she explained. "We're actually seeing what's happening." Ms Suthi said the biggest shock was David Cameron resigning, and that her and her family didn't expect it to happen.

'Welcome to Paris region, the new London'

As the City reels from the shock of Brexit, other rival European cities are now vying to roll out the red carpet to banks who may feel they need a greater presence inside the EU.

"Welcome to Paris region, the new London", declared on Friday Valérie Pécresse, president of the greater Paris region of Ile de France.

Ms Pécresse said that the French capital and its surroundings were "ready to welcome all those who want to return to Europe".

Eiffel Tower, ParisCredit:
Mike Egerton/PA Wire

HSBC in February remarked that it could could shift 1,000 investment banking jobs from London to Paris if the UK left the EU.

Stuart Gulliver, HSBC chief executive, said "We have 5,000 people in global banking and markets [HSBC’s investment bank] in London and I could imagine that around 20 per cent of those would move to Paris.”

In a statement, Paris Europlace, a lobby group for the French capital's financial centre, said: "Europe must undertake negotiations without concessions on the United Kingdom's departure" by making it clear that the UK "no longer belongs to the European single market and must be considered as a third country" without the right to benefit from a European passport granting it access to financial markets.

German Chancellor Angela MerkelCredit:
EPA/KAY NIETFELD

Meanwhile, Germany's financial capital of Frankfurt ramped up its campagn to woo banks and financiers out of London on Friday.

Lobbying group Frankfurt Main Finance opened a spcial hotline to persuade help them relocate.and launched a campaign on social media called: "Welcome to Frankfurt – What can we do for you?" Its director Hubertus Väth told AFP: "According to our prudent estimates, between 1.5 per cent and 2 per cent of financial jobs in London could move to Frankfurt in the coming five years. That would be between 10-15,000 jobs."

'Look to the future'

The chairman of global construction equipment giant JCB has urged the business community to "look to the future" after the vote to quit the EU.

Lord Bamford, whose father founded JCB in 1945, said in a statement: "The UK is the world's fifth largest trading nation.

"We therefore have little to fear from leaving the EU. European markets are important to many UK businesses, including JCB, and this will not change."

JCB employs around 5,500 UK workers at 11 factories in Staffordshire, Derbyshire and Wrexham, and operates other plants in North America, India, China and Brazil.

Lord Bamford, who took over as chairman of the family-owned firm more than 40 years ago, said of the poll result: "As a consequence of this momentous decision, we should look ahead to opportunities to trade more freely with the rest of the world, as well as building on existing trading relationships with customers and suppliers in Europe."

Ed Miliband Tweets...

What a difference a year makes

In this private moment on 11 May 2015, just four days after the general election, jubilant Conservative MPs proudly gaze at their leader David Cameron after he led the party to an unexpected outright win on one of the most dramatic nights in British electoral history.

Less than a year later and the EU referendum has wiped away the smiles from many in his party.

Picture taken from inside the 1922 Committee Room in the Houses of Parliament following the General Election of 2015Credit:
Eric Pickles

"We will be working closely with government to understand what the implications of exit will be for us, and to plan the steps we need to take with our law enforcement partners to keep people in the UK safe.”

So long George Osborne, the so-called master strategist

George Osborne has never been one to associate with things that might make him look unpopular, so much so that he has been dubbed the “Submarine Chancellor”, writes Asa Bennett.

Backing Remain in the EU referendum was always going to be a risk for him, especially when he did it with such gusto. Mr Osborne – the supposed “master strategist” - has gambled on it and lost. Does this mean his career has hit the end of the road?

ICC: 'We urge calm'

Chris Southworth, Secretary General, at the International Chamber of Commerce United Kingdom, has said: “The UK is part of a global economic system and the impact of today's decision goes far and wide.

"It will take a while to be absorbed - parts of the world are only now waking up to the news - and, while it is easy to get caught-up in the emotions, we must stay calm, take a step back, and carefully assess the impact on global commerce.

"As an organisation, ICC’s focus is on reiterating the importance of trade and investment - trade and investment channels with the EU must remain open, trade flows must remain strong, and we must remember that ratifying trade agreements is the key to encouraging growth and prosperity.”

'Corbyn has my full backing'

Andy Burnham, the shadow home secretary, has said the Labour leader has his full backing.

Walking out of the shadow cabinet meeting, he said: "We have focused on what the public has said and the message - that's where our focus was."

Asked if the Labour Party has some "hard lessons" to learn, he said: "Hard lessons for us all. I have said many times that there is a feeling that people's concerns about immigration haven't been heard, I've said that many, many times.

"That has got to be faced up to now."

He said he knows "nothing" about the motion of no confidence.

Asked if Mr Corbyn has his full backing, Mr Burnham said: "Yes he does."

"We also have to make clear America's steadfast commitment to the special relationship with Britain and the transatlantic alliance with Europe.

"This time of uncertainty only underscores the need for calm, steady, experienced leadership in the White House to protect Americans' pocketbooks and livelihoods, to support our friends and allies, to stand up to our adversaries, and to defend our interests.

"It also underscores the need for us to pull together to solve our challenges as a country, not tear each other down."

Hillary on #Brexit: This time of uncertainty only underscores the need for calm, steady, experienced leadership in the White House

In a message obtained by Civil Service World, he said: “The task falls to us to support the government, and the new prime minister when appointed, in carrying forward the clear decision of the British people to leave the European Union and set a new direction for the country.

“I am confident that we will do this with our customary calm, integrity and commitment. And we will do so while ensuring other business continues as usual, serving the public with professionalism and pride."

McGuinness: English votes have dragged Northern Ireland out of EU

Corbyn pulls out of Glastonbury

Jeremy Corbyn had been due to speak at Leftfield at Glastonbury on Sunday, but his spokesman said he had pulled out.

The spokesman said: "He is focusing on the issues that have come from the momentous decision that the country has taken."

Jeremy Corbyn MPCredit:
Richard Gardner/REX/Shutterstock

A spokesman for Mr Corbyn condemned the motion of no confidence being launched against him today as a "self-indulgent act", although he acknowledged it had been discussed at a post-referendum meeting of the shadow cabinet.

"It is a time when our party should be uniting to deal with the real issues that face Britain and the real issues that face the people of Britain, and so to create divisions in the party is a bit of a self-indulgent act," the spokesman said.

Amid mounting criticism of Mr Corbyn's failure to galvanise traditional Labour voters in support of Remain - with northern strongholds voting for Leave - backbencher Angela Smith joined calls for him to consider his position.

Davidson: Second independence referendum not in best interests of Scotland

India predicts 'period of possible turbulence'

Arun Jaitley, India's finance minister, has warned that the "full implications for the UK, Europe and the rest of the world are still uncertain", and predicted a "period of possible turbulence" in the medium term for the global economy.

However he added that India "respects" the referendum's verdict and said the Indian economy was well "well-prepared" to deal with the economic fallout from Britain's vote to leave the EU.

India is fully prepared to deal with short and medium term impact of Brexit.

The rupee fell sharply this morning, while shares in Indian firms that have high exposure to the UK such as Tata Motors, which owns Jaguar Land Rover, fell by up to 8 per cent. India has described the UK as its "entry point" to Europe.

The Indian Express newspaper reassured it readers that "Brexit doesn’t do any damage to us. "

Meanwhile Arvind Kejriwal, Delhi's chief minister, has seized upon the example of Brexit to demand a referendum on full statehood for the Indian capital, which is currently a "union territory" with limited autonomy.

Obama: 'Special relationship is enduring'

President Obama has issued a statement on the Uk's decision to leave the European Union.

"The people of the United Kingdom have spoken, and we respect their decision.

"The special relationship between the United States and the United Kingdom is enduring, and the United Kingdom’s membership in NATO remains a vital cornerstone of U.S. foreign, security, and economic policy.

US President Barack ObamaCredit:
YURI GRIPAS/AFP

"So too is our relationship with the European Union, which has done so much to promote stability, stimulate economic growth, and foster the spread of democratic values and ideals across the continent and beyond.

"The United Kingdom and the European Union will remain indispensable partners of the United States even as they begin negotiating their ongoing relationship to ensure continued stability, security, and prosperity for Europe, Great Britain and Northern Ireland, and the world."

Putin comments on Brexit...

Vladimir Putin said Britain's vote to leave the EU reflects growing concerns about immigration and security.

Speaking to reporters in Tashkent, the Russian president also said the vote is a response to unhappiness with Brussels bureaucracy.

But he condemned David Cameron for accusing him of backing Brexit, saying the British prime minister's warning that leaving the EU would please the Kremlin was "the lowest level" of politics.

"We followed this with close attention, but we did not in any way influence it and made no attempt to do so," Mr Putin said in comments carried by Russian media.

"The British prime minister's comments ahead of the vote, in which he announced the Russian position, had and has no basis." he said. "I think that was an inappropriate attempt to influence public opinion."

Mr Putin said Brexit would have both "positive and negative" consequences for Russia and the rest of the world, but that he expected markets to stabilise from the initial shock.

"Life will show us whether there are more plusses or minuses," he said.

Mr Kelleher suggested the European HQ could be in Dublin or Frankfurt but did not say it would replace the London office. "Obviously we're hoping that the British voter will show sense and listen to the economic argments and stay, but we clearly are looking at our plans," he said.

She added: "I think over the weeks there has been consistent dissatisfaction with him over the referendum campaign, that is not something that is new really, and that dissatisfaction has increased rather than decreased towards the end of the campaign.

"So this motion gives the parliamentary party ... their own right to have a view about his leadership."

How the EU referendum night unfolded - highlights from the night

Europe's existential crisis

The UK departure opens a disturbing crack in the foundations of global governance, writes Peter Foster.

Britain’s decision to quit the EU is a seismic moment for Europe because it points to the inescapable reality that a new national politics – whose angry force was for too long simply denied by the technocrats and governing classes – really is trumping Europe’s supranational ambitions.

The truly existential crisis for Europe will involve combating an intoxicating populist narrative and drive through the kind of structural economic reforms that will prevent Europe (as distinct from the EU) from sliding into irrelevance and geo-political old age.

Nicky Morgan for PM?

Education Secretary Nicky Morgan did little to talk down speculation that she will seek to be nominated as a candidate to replace Mr Cameron.

Asked about the rumours that she is taking soundings about the leadership, Mrs Morgan told BBC Radio 4's World At One: "I think it's too soon. We are less than 24 hours since the polls closed, it's too soon to speculate. There's all sorts of names, I'm sure, around."

Pressed if her name would be one of them, Mrs Morgan replied: "I have said before I think it would be really good to have a woman in the final two but that's a matter for the parliamentary party, and it's a question of who the parliamentary party thinks is the right person to lead - not just in terms of the negotiations but also the wider 'one nation' agenda that we set out in our manifesto last year and that we were elected on."

UK can't sign trade deals until it fully quits the EU

Britain cannot agree a trade deal with the US or other states until it has fully left the European Union after a two-year negotiation, sources say.

It puts a major stymie in the Leavers' plan to sign simultaneous trade deals while also negotiating an EU exit.

After Article 50 is activated, the UK is bound by EU treaty law for two years. That includes "all the rights and obligations" of being a full member, which forbid an independent trade policy.

An EU legal source confirmed: "As long as the withdrawal has not become legally effective, the UK is a MS with all rights and obligations, including the obligation to respect the division of competences in the area of trade."

In the weeks before the referendum, it was briefed to the Financial Times that Martin Selmayr, Jean-Claude Juncker's chief of staff, had a "Plan B" for Brexit in his safe. Officials refuse to say whether that was a lie.

Report from Matthew Holehouse

President on the European Commission Jean-Claude JunkerCredit:
AP Photo/Markus Schreibe

Angela Merkel appeals for calm in wake of Brexit vote

Angela Merkel, the German Chancellor, has appealed for calm and urged states not to draw "quick and simple" conclusions, writes Matthew Holehouse.

She said it is essential they "calmly and prudently" react.

"We take note of the British people's decision with regret. There is no doubt that this is a blow to Europe and to the European unification process," she said.

Angela MerkelCredit:
Reuters

But "what the consequences of this would be... would depend on whether we - the other 27 member states of the EU - prove to be willing and able to not draw quick and simple conclusions from the referendum in Great Britain, which would only further divide Europe," said Merkel.

Member states should "calmly and prudently analyse and evaluate the situation, before making the right decisions together," said Mrs Merkel.

She will host talks with French President Francois Hollande, Italian Prime Minister Matteo Renzi and European Council president Donald Tusk in Berlin on Monday.

Recalling the founding aim of the EU, Merkel urged Europeans to "never forget that the idea of European unity was an idea of peace."

Watch: Boris Johnson's tribute to the Prime Minister

Japanese finance minister 'very concerned' about Brexit

Shinzo Abe, the Japanese prime minister, said financial markets need to be stabilised in the aftermath of Britain's vote to leave the European Union, with the yen surging against other currencies and Japanese stocks plunging.

"We must respond firmly", the prime minister said in a speech in northern Japan on Friday. "The foreign exchange market and other financial markets need to be stabilised", writes Julian Ryall in Tokyo.

Taro Aso, the finance minister, echoed those concerns, telling reporters, "We are very concerned over the risks to the global economy and financial and exchange markets.

The government will monitor developments "more than ever", he said, and take measures to avoid further volatility.

So far we've lost our place in the European Union, a prime minister and £200billion from the stock market and it's not even lunchtime.

The yen - seen as a safe-haven currency - soared against the dollar and other currencies immediately after the result of the referendum became apparent, although it retreated later.

The Bank of Japan has said it will "stand ready to provide sufficient liquidity" with central banks in Europe and the US to "ensure the stability of financial markets".

There are also concerns in Tokyo that Britain's departure from the EU will affect negotiations on a free trade agreement between Europe and Japan, Kyodo News reported, with Motoo Hayashi, the trade and industry minister, admitting completing a deal before the end of the years has "become difficult".

He said: "I thank David Cameron for the contribution he has made to public life in our country but I welcome his resignation.

"People wanted him to set out a vision of what a future Europe would look like, but they were confronted instead with a negative campaign that too often relied on scare tactics. The Labour campaign led by Alan Johnson, with the help of our talented and hard-working party staff, set out clearly how a reformed EU would benefit working people.

"Labour has lessons to learn and we will to continue to listen but our focus over the next few days must be to reassure voters, millions of whom are very concerned about our country's future. They should know that we will work in Parliament to provide stability in a period of great instability for our country."

Pope: Brexit vote is 'will of the people'

Church leaders, almost all of whom publicly backed Remain, are scrambling to make peace with the Brexiteers – including many in their own congregations, writes John Bingham.

The Archbishops of Canterbury and York were among the first off the block with a joint statement accepting the outcome of the referendum which they said had been “determined by the people of this country”.

They said it was now time to “re-imagine both what it means to be the United Kingdom in an interdependent world and what values and virtues should shape and guide our relationships with others”.

The Pope says the UK voting to leave EU is "will of the people" and calls for "guarantees" for "good of both Britain and continent" #EUref

They pointedly added: “Many of those living among us and alongside us as neighbours, friends and work colleagues come from overseas and some will feel a deep sense of insecurity.

“We must respond by offering reassurance, by cherishing our wonderfully diverse society, and by affirming the unique contribution of each and every one.”

Cardinal Vincent Nichols, the leader of the Roman Catholic Church in England and Wales, took a similar line emphasising that the “will of the people, expressed at the ballot box” must be respected with “respect and civility, despite deep differences of opinion”.

He added: “We pray that our nations will build on our finest traditions of generosity, of welcome for the stranger and shelter for the needy.”

The PopeCredit:
Reuters

But the Church of Scotland was more openly critical of the result and said it would “inevitably” raise questions about Scottish independence but added that this was “for another day”.

The Rev Dr Richard Frazer, Convener of the Church of Scotland’s Church & Society Council, said it had been a “bitter and polarising campaign” adding: “I believe this is a decision which many people will regret.

“The Church of Scotland has spoken out consistently over the last 20 years in favour of our continued membership to the European Union – but it is the democratic decision of people living in the UK and we must honour that.

“In Scotland, the majority voted differently and this will inevitably raise questions about Scotland’s future in the rest of the UK.

Photo: Boris Johnson and Michael Gove

Conservative party chairman will also resign this year

A Conservative spokesperson has confirmed that Andrew Feldman, the chair of the party, will resign when David Cameron does later this year.

They said: “Andrew Feldman always said that he would serve alongside the Prime Minister for as long as he was needed.

"The Prime Minister has asked him to stay as Chairman of the Conservative Party whilst the leadership campaign takes place. He will ensure that the Party Conference is properly delivered in the autumn.

“Lord Feldman will step down when the Prime Minister leaves Downing Street.”

Donald Tusk: UK must activate Article 50 'as soon as possible'

The EU's leadership has demanded Britain activate Article 50 exit talks "as soon as possible" as they attempt to end the uncertainty over the bloc, "however painful that process may be", writes Matthew Holehouse.

President Tusk, President Schulz and Prime Minister Rutte met this morning in Brussels upon the invitation of European Commission President Juncker.

EU flagCredit:
EPA

Jean Claude Juncker was applauded at a Press briefing after he insisted it is not the "beginning of the end" for the European Union.

Is this the beginning of the end o the European Union? Asks the BBC. He replies: "No."

"We now expect the United Kingdom government to give effect to this decision of the British people as soon as possible, however painful that process may be.

"Any delay would unnecessarily prolong uncertainty. We have rules to deal with this in an orderly way. Article 50 of the Treaty on European Union sets out the procedure to be followed if a Member State decides to leave the European Union. We stand ready to launch negotiations swiftly with the United Kingdom regarding the terms and conditions of its withdrawal from the European Union."

Nicola Sturgeon: Scotland and London will battle to stay in EU

The Scottish First Minister has said she is determined to keep the country inside the EU and particularly in the single market, she says the Mayor of London will do the same.

She is seeking an urgent meeting with the European Commission in a bid to discuss options to keep Scotland in the EU.

Ms Sturgeon said: "I want to make it absolutely clear that I intend to take all possible steps and explore all options to give effect to how people in Scotland voted, in other words to secure our continued place in the EU and in the single marker in particular.

"I have also spoken with Mayor Sadiq Khan and he is clear that he shares this objective for London so there is clear common cause between us."

She says the vote displayed a clear "divergence" and "disaffection with the political system that has failed in too many communities .

"The Westminster establishment has some serious soul searching to do and I hope very much it now does it."

Nicola SturgeonCredit:
PA

She called the Brexit outcome "democratically unacceptable" because the whole of Scotland voted to remain inside the EU and because so many people based their vote in the independence referendum on the notion that they would remain in the EU.

Ms Sturgeon said: "If parliament judges that a second referendum is the best or only way to protect our place in Europe it must have the option to hold one within that timescale.

"We will begin to prepare the legislation that would be required to enable a new independence referendum to take place if and when Parliament decides."

Ms Sturgeon closes by praising the Prime Minister and his dedication to office and gives him her thanks.

He says he disagrees with those who say it was wrong to hold a referendum and ask the British people to decide.

"In the end this question is about the people... it is about the very principles of our democracy", he says, "I think the electorate have searched in their hearts and answered as honestly as they can.

"They have decided that it is time to vote to take back control from an EU that has become too remote, too opaque and not accountable enough to the people it is meant to serve".

He says there is "no need for haste" and reiterates that nothing will change in the short term, except work to begin to leave the union.

Boris Johnson leaves his houseCredit:
PA

"There is no need to invoke Article 50," he says. "This does not mean that the UK will be any less united, nor indeed that it will be any less European."

Mr Johnson rejects the idea that the vote is about pulling up the drawbridge, adding: "We cannot turn our backs on Europe, we are part of Europe."

Our children will continue to travel, learn the language and interact with those on the continue and we will continue to be "a great European power".

He says the EU was a "noble idea for its time, it is no longer right for this country" and says we will have a more secure and more prosperous country because of the decision to leave.

"I believe we now have a glorious opportunity" Boris says, adding we can set taxes and control our borders however we see fit.

"The most precious thing this country have given this continent is the idea of parliamentary democracy ... I believe the British people have spoken up for democracy in Britain and across Europe and I believe the British people can be very proud," he adds.

Emergency meetings in France and Germany

President François Hollande of France held an emergency cabinet meeting on Brexit this morning in the presence of Pierre Moscovici, the European economy and finance commissioner, Henry Samuel writes.

Hollande also held a 20-minute phone call with Chancellor Angela Merkel of Germany and the pair "drew the consequences" of the vote. He also spoke to European Council president Donald Tusk.

Mr Hollande in recent days has warned that Britain's exit from the EU would be "irreversible" and called for a "relaunch of European construction...whatever the response of the British people".

He is due to travel to Berlin next Monday ahead of a special European summit on Brexit on Tuesday and Wednesday in Brussels.

It came as Spain said it was closer to bringing Gibraltar under its control after Britain voted to leave the European Union, prompting London to jump in to ease concerns in the overseas territory.

The Rock of GibraltarCredit:
Telegraph

Matthew Holehouse writes that the tiny rocky outcrop on Spain's southern tip has long been the subject of an acrimonious sovereignty row between London and Madrid, which wants Gibraltar back after it was ceded to Britain in 1713.

"Our formula... is British-Spanish co-sovereignty for a determined period of time, which after that time has elapsed, will head towards the restitution of Gibraltar to Spanish sovereignty," Spain's acting Foreign Minister Jose Manuel Garcia-Margallo told Spanish radio.

Political leaders react to the vote

KPMG issues house price warning after Brexit vote

Tax experts KPMG have issued a stark warning about the state of the UK housing market following the decision to leave the EU.

While the UK won't officially exit for at least two years, uncertainty in the markets in the short term is likely to have an impact on prices and the number of people prepared to buy.

In a statement, Jan Crosby, head of housing at the group said: "As we enter a new phase of uncertainty following the UK’s vote to leave the EU, it is very likely people will put big decisions on hold, and one of the biggest decisions people ever make is a house purchase.

House prices could fall, experts warnCredit:
PA

"This means we can expect short term transaction volumes to decrease and to stay deflated for some time – perhaps until next spring.

"The impact on house prices really depends on the house builders’ reaction. It is likely there will be a price drop in the order of 5% in regional UK, possibly slightly more in London, but we are most likely to see a drop in the growth in asking prices rather than pricing, which will likely change less.

"If general economic volatility is high there risks being a larger price adjustment caused by price cutting, creating a moderate downward spiral of pricing. And this will be worse if immigration inflows are materially reversed."

Petition for second EU referendum reaches 77,000 signatures

A petition calling for a second EU referendum has been launched - and is proving so popular the page keeps crashing.

The page, set up by William Oliver Healey, reads: "We the undersigned call upon HM Government to implement a rule that if the remain or leave vote is less than 60% based on a turnout less than 75% there should be another referendum."

At 10am it had more than 77,000 signatures and had received more than 11,000 signatures in the previous hour.

'Sombre atmosphere' at Glastonbury as result trickles across site

A sombre atmosphere descended on Glastonbury Festival after a night of partying as news filtered through that Britain had voted to leave the EU.

There were no televisions at the site showing the result, but news quickly spread, although Prime Minister David Cameron's resignation was still trickling through as the festival prepared to officially open at 11am.

Among festival-goers, there was a feeling of surprise and uncertainty.

The mood at the festival is reportedly subdued as the result emerged this morningCredit:
PA

Alex Keshavarzi, 26, from Stevenage, and his friend Rachel Hawkins, 25, from Wales, said they were "devastated" by the result.

Mr Keshavarzi said: "We were just talking about how uncertain everything is now and how unsafe it has made us feel. I'm a student, a PhD student, I don't know how it's going to affect how I can travel inside the EU, what it means in terms of my research and my funding, because that all comes from European bodies and research councils.

"In 20 years there might be light at the end of the tunnel, we'll see something good out of it. For the time being I can't see it being a good thing.

Video: Donald Trump hails Brexit result

What does the vote mean for Europe?

As the UK gulps down reassuring cups of tea in a bid to try and get our heads around a Brexit vote, our Europe editor Peter Foster ponders what it all means for Europe.

Optimists will see Brexit as a trigger for a new beginning for Europe; a shock therapy that acknowledges the failures of the current arrangements and tries to seek a new mode of governing that better acknowledges national realities while preserving Europe’s open markets, borders and skies.

Financial traders react to the vote at ETX Capital in LondonCredit:
Bloomberg

But no one should underestimate the difficulty of that, given the incoherence of populist political narratives that – as a new European Council on Foreign Relations survey shows – fundamentally want less global trade and more borders; less multi-culturalism and more EU disintegration.

The unavoidable reality is that as globalisation continues, in terms of trade share, innovation capacity and population, Europe is shrinking relative to the rest of the world.

The truly existential crisis for Europe is therefore how to combat that intoxicating populist narrative and drive through the kind of structural economic reforms that will prevent Europe (as distinct from the EU) from sliding into irrelevance and geo-political old age.

In the end, pragmatism and incrementalism may simply not be enough if Europe – to quote a senior German politician I spoke with recently – wants to be more than a museum where Asians and American come on holiday.

Will the UK continue to be a member of Nato?

It insists that the UK will "remain a strong and committed Nato Ally". This is clearly wishful thinking.

Trident, the territorial integrity of the UK, and the ability of the public finances to sustain the current defence commitments are in serious jeopardy.

Mr Stoltenberg said: "The British people have decided to leave the European Union. As it defines the next chapter in its relationship with the EU, I know that the United Kingdom's position in NATO will remain unchanged.

"The UK will remain a strong and committed NATO Ally, and will continue to play its leading role in our Alliance.

"Today, as we face more instability and uncertainty, NATO is more important than ever as a platform for cooperation among European Allies, and between Europe and North America.

Trident is the UK's nuclear missile systemCredit:
Telegraph

"A strong, united and determined NATO remains an essential pillar of stability in a turbulent world, and a key contributor to international peace and security.

"The Alliance remains committed to closer cooperation with the European Union. At the Warsaw Summit in July, we will step up our cooperation, because together we are more effective in upholding our common values and keeping our nations safe."

David Cameron has spoken to Nicola Sturgeon amid Scottish split fears

David Mundell, the Scottish Secretary, said David Cameron had already spoken to Nicola Sturgeon today, amid claims she could demand another independence referendum north of the border, writes Auslan Cramb.

Mr Mundell, Scotland’s only Tory MP, added that he has offered to meet the Scottish Government in Edinburgh to discuss “next steps” while stressing that the UK has fundamental strengths.

Nicola SturgeonCredit:
AFP

He said: “This is a time for calmness and deliberation, not pushing other personal or political agendas.”

Ms Sturgeon is expected to set out her response to the referendum result later this morning.

Ruth Davidson, the Scottish Conservative leader, said the UK and Scottish governments must work together for the benefit of “all people in Scotland”, and called for the stability of the country to be put first.

She also paid tribute to Mr Cameron, saying he “restored the UK economy from the depths of the financial crisis, he pushed ahead with a series of necessary social reforms, and, in Scotland, delivered on devolution”.

There are also big questions about how Vote Leave plan to halt EU migration, something they promised to do soon after an Out vote; whether the £350million will really go to the NHS after Nigel Farage suggested it might not and when the leaving process will be triggered.

After David Cameron's announcement that he will resign later this year, all eyes will be on Boris Johnson and Michael Gove as these questions begin to rumble around Westminster in the days to come.

Senior Merkel ally suggests Scotland could join EU

A senior ally of Angela Merkel has opened the door to Scotland joining the EU, Matthew Holehouse writes.

Manfred Weber, the leader of the conservative bloc in the European parliament who is close to Merkel, says there are “upcoming decisions on the national levels” for Scotland and Northern Ireland “to go another way.”

“It is up to them but Europe to welcome new member states. That is totally clear. Those who want to stay are welcomed in the European Union.”

He says Article 50 talks must begin “immediately”. “We cannot wait for a Tory party to elect a new prime minister.”

“We have the will of the British people on the table. The question is now to implement it. We must do this very quickly. The continent of Europe cannot be occupied by an internal Tory party battle of who is the next leader of Great Britain.”

“This is a British problem,” he says, noting that the pound is tanking but not the Euro. “Britain has a bigger problem than the European Union.”

Donald Trump: Brexit vote is 'a great thing'

Donald Trump, the US presidential hopeful, has arrived in the UK and said he is "very happy" about the Brexit vote.

Presidential hopeful Donald Trump said it is a "great thing" that the people of the UK have "taken back their country" in voting to leave the EU, as he touched down at his golf resort in Scotland, Simon Johnson writes.

The billionaire arrived in his "Trump" emblazoned helicopter at the Turnberry resort in South Ayrshire to officially open the revamped resort he bought in 2014, just an hour after Prime Minister David Cameron said he intended to stand down in October.

He gave a thumbs-up as he left his helicopter and shook hands with workers on his way to the hotel before making the comments about the EU referendum result.

Donald Trump is in the UKCredit:
AP

He said: “I think it's a great thing that happened, an amazing vote, very historic. We're very happy. Asked why people voted for Brexit, he said: “People are angry. All over the world they're angry.”

Asked if he took heart from the result for his own campaign, Mr Trump said: “We're doing very well in the United States and essentially the same thing is happening in the United States.

“They are angry over borders, they are angry over people coming into the country and taking over and nobody even noticing. They are angry about many, many things.”

Asked to specify where people were angry, he said: “The UK, the US, many other places. It will not be the last.”

The billionaire mogul predicted the divisions caused by the referendum would “heal” and said it would bode well for his campaign.

“You know I said this would happen. I think it is a great thing. We will see but I think it will be a great thing. Basically, they took their country back,” he said.

Which voters backed a Brexit?

Just two of the top thirty areas for over 65s voted to Remain - South Lakeland in the North West and South Hams in the South West.

Only three areas where more than half of residents had a degree voted to leave - South Bucks, West Devon, and Malvern Hills in the West Midlands.

And just three of the top fifty areas DE class areas voted to Remain. Leicester, Liverpool and Newham in London were statistical anomalies because they are big cities with a high number of young voters.

Jeremy Corbyn says he won't resign despite Brexit result

More pictures of Cameron resigning

Mark Carney: Bank of England is ready for 'new' economy

The Bank of England governor Mark Carney has made the following statement:

"It will take some time for the UK to establish a new relationship with Europe and the rest of the world. So some market and economic volatility can be expected as this process unfolds, but we are well prepared for this. Her Majesty’s Treasury and the Bank of England have engaged in extensive contingency planning and the chancellor and I have remained in close contact including through the night and this morning. The Bank of England will not hesitate to take additional measure as required, as markets adjust.

"The capital requirements of our largest banks are now 10 times higher than before the financial crisis. The Bank of England has stress-tested those banks against scenarios far more severe than our country currently faces. As a result of these actions UK banks have raised over a £130bn of new capital and now have more than £600bn of high quality liquid assets. That substantial capital and huge liquidity gives banks the flexibility they need to continue to lend to UK businesses and households even during challenging times.

Moreover, as a backstop to support the functioning of the markets the Bank of England stands ready to provide more than £250bn of additional funds through its normal market operations. The Bank of England is also able to provide substantial liquidity in foreign currency if requires. We expect institutions to draw on this funding if and when appropriate."

Brexit is just the beginning

Jean-Luc Mélenchon, French firebrand leftist MEP, said that France would have voted to the leave the EU if asked. "This is the end of a world that begins with this Brexit," he told France Info radio.

"This teaches a lesson to the whole of Europe - either we change it or we leave it. This is the time for a plan B."

He described the current EU as "dead, killed by privileges for the cast of Eurocrats, by permanent lies, by the politics of flexibility...Everyone has had enough."

He said that already the "five president of the EU" had started "the process of drawing up a new (EU) treaty".

"Once again, they are doing so in hiding. Once again leaders are not talking. I fear a domino effect."

"The daily reality of Europe doesn't correspond at all to what the EU tried to start 30 years ago at least. Germany must stop ceaselessly telling other peoples what's best for them. France must have some willpower and make proposals. It's not that much to ask to live ones life working and being paid in a dignified way, receiving healthcare and education. All this is cast into question with the EU."

Donald Tusk: 'There must be no hysteria over Brexit'

Donald Tusk, the president of the European Council, has appealed for calm and says the must be no "hysteria" about the British result.

There will be "no legal vacuum" and EU law will continue to apply until Britain formally leave.

There are serious "political consequences" for the UK but leaders are "prepared".

In a statement he says: "I would also like to reassure you that there will be no legal vacuum. Until the United Kingdom formally leaves the European Union, EU law will continue to apply to and within the UK.

Donald Tusk, the president of the European CouncilCredit:
LAURENT DUBRULE

"The remaining 27 leaders will begin talks on Tuesday on the margins of the European Council.

"There's no hiding the fact that we wanted a different outcome of yesterday's referendum. I am fully aware of how serious, or even dramatic, this moment is politically. And there's no way of predicting all the political consequences of this event, especially for the UK.

"But this is not a moment for hysterical reactions. I want to reassure everyone that we are prepared also for this negative scenario. As you know the EU is not only a fair-weather project. "Over the past two days I have spoken to all the EU leaders, I mean Prime Ministers and Presidents as well as heads of the EU institutions, about the possibility of a Brexit. Today, on behalf of the twenty seven leaders I can say that we are determined to keep our unity as twenty seven.

"For all of us, the Union is the framework for our common future. I would also like to reassure you that there will be no legal vacuum. Until the United Kingdom formally leaves the European Union, EU law will continue to apply to and within the UK. "All the procedures for the withdrawal of the UK from the EU are clear and set out in the Treaties. In order to discuss the details of further proceedings, I have offered the leaders an informal meeting of the twenty seven in the margins of the European Council summit. And I will also propose to the leaders that we start a wider reflection on the future of our Union. "Finally, it's true that the past years have been the most difficult ones in the history of our Union. But I always remember what my Father used to tell me: What doesn't kill you, makes you stronger."

Fallon: 'It's extremely sad news'

Michael Fallon, the Defence Secretary, told Radio 4's Today programme: "Of course it's extremely sad news and I would have preferred him to stay on to help make this decision work but it's his decision and I think it's the honourable and decent thing to do.

"He lost the argument in the referendum campaign and it does answer your question as to who is best placed to take this renegotiation forward." Mr Fallon added, however, that "it's too early to speculate" on who will replace Mr Cameron.

Michael Fallon, the Defence SecretaryCredit:
SWNS

"What's important now is that we reassure the country, we stabilise the markets and the economy and we reassure our allies that Britain is not turning its back on the world," he added.

Theresa Villiers, the Northern Ireland secretary, added: "It's truly shocking news, it's deeply sad... I would very much have preferred David Cameron to have been steering this country through the next few years. I entirely respect his decision but I think it's a sad day for the country that he has decided to stand down."

Alex Salmond, the former Scottish First Minister, said the resignation was "inevitable".

Labour reaction to Cameron's resignation

Angela Smith, a Labour MP, tells the Telegraph: "Labour needs now to show that it can offer constructive opposition in what is going to be a period of terrible political and economic instability for the country.

"We need leadership that will do that and commit to the very difficult task of helping to unite a very seriously divided nation."

Hammond: Putin will feel less pressure this morning

Philip Hammond, the Foreign Secretary, has called for talks with Britain's former EU partners to continue collaborating on security issues.

David Cameron previously warned that the world would be a less safe place if Britain left the EU.

Vladimir PutinCredit:
AP

Mr Hammond said: "I don't want to overstate the case but I do think Britain has been a very positive influence in Europe on the security agenda. I do worry with Britain now having a hugely diminished voice we will see that resolve from our European partners waning."

On Vladimir Putin he said: "I suspect he will be feeling a little less pressure this morning and a little more upbeat."

Mr Hammond warned that Britain's voice would now be diminished within the EU as we prepare for our exit.

Farage: The sun has risen on an independent UK

Corbyn calls for Government to start EU withdrawal immediately

Jeremy Corbyn has provoked a furious backlash from Labour MPs after calling on the Government to immediately start the process of withdrawing from the European Union.

The Labour leader said that Article 50 needs to be "invoked now" in response to the EU referendum result because "many communities are fed up with cuts and economic dislocation.

Labour MPs, who repeatedly warned that Mr Corbyn was failing to do enough during the referendum campaign, said he was "absolutely crazy".

It comes after a leaked Labour script claimed that Jeremy Corbyn is "uniquely placed as a critical Remainer" to help unify Britain in the wake of the referendum.

His comments led to accusations that he is "delusional" and led to open calls for him to quit.

Mr Corbyn said: "Article 50 needs to be invoked now. Many communities are fed up with cuts and very angry. The message is that many communities are fed up with cuts and economic dislocation. Clearly there are very difficult days ahead. There will be job consequences."

Final voting tally announced

Gibraltar's fears for the future

The Gibraltar Chronicle reports that the British territory voted overwhelmingly to remain in the EU, with Gibraltarians fearing that Brexit will antagonise already testy relations with Spain.

"Gibraltar voted by 19,322 votes to 823 to stay in the EU, meaning 96% of the electorate chose Remain," the newspaper says this morning.

The Rock of GibraltarCredit:
Paul Grover for the Telegraph

Turnout was high at 84 per cent.

Chief Minister Fabian Picardo said: "This result demonstrates that the will of the people of Gibraltar is overwhelming to remain a part of the European Union. Gibraltar and the Gibraltarians, perhaps more so than many others have ‘skin in the game’ of staying a part of Europe. Europe matters to us and we demonstrate that tonight.”

So the overall vote to leave the EU will come as a bitter blow to the British territory.

Farage: I can't guarantee EU money will go on the NHS

Bank of England issues statement

"The Bank of England is monitoring developments closely. It has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks. The Bank of England will take all necessary steps to meet its responsibilities for monetary and financial stability."

Russia predicts break-up of UK

Much has been made of the Kremlin's supposed interest in Brexit, and now that it is happening some commentators here are pre-emptively pushing back at an anticipation blame being directed at Moscow.

"It looks like Britain is quitting the EU. Will they play the song "It's all Putin's fault?" Or will they analyse the problems of the EU this time?" tweeted Vladimir Soloviev, a popular television presenter who is generally considered loyal to the Kremlin line.

Meanwhile, media have focussed on the further breakup of Britain and even the EU and the growth of far right nationalism across the continent.

"British media are certain: at this rate the UK will leave the EU, but that could threaten the break up of the country itself," reported Russia's Vesti state television channel.

How eurosceptic is your area?

Boris's dad on whether his son will be the next PM

'The months ahead are going to be a nervy time'

Simon Walker, Director General of the Institute of Directors, said: “While this may not have been the result that the majority of our members wanted, Britain has voted to leave the EU, and it is now imperative that our political leaders manage the transition as smoothly as possible. The weeks and months ahead are going to be a nervy time for business leaders, so they need to know that the Government is focussed on maintaining stability while a new relationship with the EU is established.

Simon Walker

“British businesses are resilient and, with their characteristic ingenuity, they will weather this storm. It is now beholden on politicians to negotiate a deal with European leaders which preserves the ability of British firms to trade easily with the remaining member states. Even once we have left, the EU will continue to be our biggest trading partner, and the first destination for many companies when they start to export. One thing the Government must do immediately is to guarantee the right to remain of EU citizens currently in the UK. Companies do not want to have to worry about losing valued staff.”